08/18/08 Outside markets drive grains down

Market Line August 18, 2008 Wheat futures were significantly lower Friday but still showed gains on the week. Lynn Smith of the Zaner Group in Chicago says outside markets were at work. Smith: "As a strong U.S. dollar and weak crude oil market pushed the market sharply lower." Even an announcement by the USDA that Iran has purchased over 689-thousand metric tons of U.S. hard red winter wheat didn't help the market. About 200-thousand tons of that were previously reported under unknown destinations. Disappointing was news Egypt purchased 155-thousand metric tons of Russian and Ukrainian wheat Friday. None from the U.S. Sources say the sales were 30 dollars a ton under the cheapest U.S. offer. There was talk of a U.S. and Canadian donation of wheat to Pakistan. On Friday Chicago September wheat was down 40 ¼ cents at 8-24 ¼. September corn down 28 at 5-29 ¾. Portland soft white wheat five to 15 cents lower at mostly 8-30. Club wheat 8-40. HRW 11.5 % protein 35-39 lower at 9-38. DNS 14% protein as much as 43 cents lower at 10-12. Barley at the coast 224 dollars a ton. Cattle futures saw sharp losses Friday too. Uneasiness over cash cattle prices was called a factor in the live pit. Feeders got spillover pressure and pressure from the board's premiums to the CME cash index. Oct live cattle down 205 at 105-85. Oct feeders down 90 at 114-52. Weakening cheese prices continued to pressure milk futures with Sept Class III milk down 28 cents at 16-48. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.